ZATCA announces penalties for non-compliance with e-invoice regulations

Logo of Zakat, Tax and Customs Authority

Zakat, Tax and Customs Authority (ZATCA) announced the main penalties related to the enactment of the first phase of the electronic invoicing (e-invoicing), according to a statement.

The first phase, known as “the generation phase”, will begin on Dec. 4.

The authority set a fine of SAR 5,000 for the businesses that do not issue and archive an e-invoice.

Meanwhile, businesses may receive a warning for not including a QR code in an e-invoice, not writing the value-added tax (VAT) registration number or not informing the authority of the reasons that may stop the e-invoicing generation process, if any. In case of cancelling the e-invoice after being issued, the taxpayer will pay a fine of SAR 10,000.

ZATCA also indicated that taxpayers should stop issuing handwritten invoices and that invoices written using text editing tools will not be considered e-invoices. It also urged taxpayers to use compliant electronic invoicing solutions to maintain e-invoices log.